Trump signs agreement on critical minerals with Australia

[Modern industry depends on mining for the valuable rare-earth, rare earth crystal detail]
Joaquin Corbalan/iStock via Getty Images

President Trump signed an agreement [https://thehill.com/homenews/administration/5563482-trump-signs-critical-minerals-agreement-with-australia/] with visiting Australian Prime Minister Albanese on Monday, intended to boost cooperation in accessing critical minerals and rare earths as the U.S. seeks to reduce reliance on Chinese supply chains.

The full text of the agreement is not yet available, but Albanese said the deal calls for an initial $1 billion contribution each from Australia and the U.S. over the next six months toward joint projects between the two countries on rare earths.

The two presidents said the agreement would include Australian processing of rare earths, with Albanese adding that Australia had capacity to expand those efforts.

While the agreement has been in the works for some time, the announcement followed China's recent additional restrictions on exporting critical minerals.

Trump also said the AUKUS pact between the U.S., Australia and the U.K. is "moving along very rapidly [https://www.bloomberg.com/news/articles/2025-10-20/trump-says-aukus-deal-is-proceeding-rapidly-in-boost-for-pact?srnd=homepage-americas]," signaling he may allow the partnership to move forward even as his administration reviews whether to keep it going.

Australia, which holds the world's fourth-largest deposits of rare earths, has attempted to position itself as a viable alternative to China for supplies, and Lynas Rare Earths (OTCPK:LYSCF [https://seekingalpha.com/symbol/LYSCF]) (OTCPK:LYSDY [https://seekingalpha.com/symbol/LYSDY]) in Australia is only current producer of heavy rare earths outside China; Lynas shares +14.1% in Monday's trading.

Other potentially relevant stocks trade mixed, including American Battery Technology (ABAT [https://seekingalpha.com/symbol/ABAT]) +23.1%, NioCorp Developments (NB [https://seekingalpha.com/symbol/NB]) +10.7%, USA Rare Earth (USAR [https://seekingalpha.com/symbol/USAR]) +6.1%, United States Antimony (UAMY [https://seekingalpha.com/symbol/UAMY]) +3.7%, Ramaco Resources (METC [https://seekingalpha.com/symbol/METC]) +3.1%, Peabody Energy (BTU [https://seekingalpha.com/symbol/BTU]) +2.7%, Lithium Americas (LAC [https://seekingalpha.com/symbol/LAC]) +2.3%, MP Meterials (MP [https://seekingalpha.com/symbol/MP]) +0.2%, but TMC the metals company (TMC [https://seekingalpha.com/symbol/TMC]) -2.6%, Westwater Resources (WWR [https://seekingalpha.com/symbol/WWR]) -5.4%, Trilogy Metals (TMQ [https://seekingalpha.com/symbol/TMQ]) -5.5%, Nouveau Monde Graphite (NMG [https://seekingalpha.com/symbol/NMG]) -5.8%, Critical Minerals (CRML [https://seekingalpha.com/symbol/CRML]) -8.1%.

ETFs: (NYSEARCA:REMX [https://seekingalpha.com/symbol/REMX]), (LIT [https://seekingalpha.com/symbol/LIT]), (ILIT [https://seekingalpha.com/symbol/ILIT]), (BATT [https://seekingalpha.com/symbol/BATT])

MORE ON LYNAS RARE EARTHS AND RARE EARTH MINERALS

* Understanding REMX: Investing In The Rare Earth Supply Chain [https://seekingalpha.com/article/4830218-understanding-remx-investing-in-rare-earth-supply-chain]
* REMX: The Critical Materials Rally Will Continue [https://seekingalpha.com/article/4829627-remx-critical-materials-rally-will-continue]
* Lynas: Key Asset In The Rare Earth Race [https://seekingalpha.com/article/4823017-lynas-key-asset-rare-earth-race]